Ciena Corp (CIEN:NYE) Analysts rate as Strong Buy, $74 target

STA Research
by: STA Research

Based on the Ciena Corp stock forecasts from 16 analysts, the average analyst target price for Ciena Corp is USD 73.79 over the next 12 months. Ciena Corp’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Ciena Corp is Bullish , which is based on 9 positive signals and 3 negative signals. At the last closing, Ciena Corp’s stock price was USD 48.74. Ciena Corp’s stock price has changed by -3.59% over the past week, -6.00% over the past month and -18.78% over the last year.

Just recently Loop Capital lowered the target on the stock to $84 from $92, and maintained the Outperform rating.

Cowen also lowered the target to $82 from $96 and kept the Outperform rating on the stock.

Ciena Corporation is a provider of network hardware, software, and services for video, data, and voice traffic transport, routing, switching, aggregation, service delivery, and administration across global communications networks. Ciena Corporation is based in Hanover, Maryland, and was formed in 1992.

 

What we like:

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

Overpriced compared to book value

The stock is trading high compared to its peer’s median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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